New Delhi, Jan. 29
DCM Shriram Consolidated Ltd's (DSCL) Q3 net profit has dipped 24.4 per cent to Rs 24.45 crore this fiscal from Rs 32.37 crore in the year-ago period.
The company said that the dip was on account of a temporary shutdown of its plastics plant, which was needed to hook up expanded capacities. This resulted in production loss for that period. Realisations declined sharply and the costs of plastics and chemicals businesses increased during Q3. Profits were also adversely affected by debit on account of foreign exchange rate difference of Rs 4 crore compared to credit of Rs 5 crore last year.
The company's revenues, however, increased by 18 per cent to Rs 674 crore. The improvement in revenues was driven by higher volumes in plastics, chemicals and sugar businesses with the commissioning of expanded capacities. In a joint statement, Mr Ajay Shriram, Chairman and Senior Managing Director, and Mr Vikram Shriram, Vice-Chairman and Managing Director, said, "Our operations this quarter were satisfactory despite production loss due to commissioning/stabilisation of new capacities and integrating them with the existing capacities, difficult price environment in plastics and chemicals businesses and rising input costs. "